Political Economy of IT in India: Challenges and Policy Responses

By Dilip Dutta and Supriyo De.

Published by The Social Sciences Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

This paper examines the political economy of the information & communication
technology (ICT) industry in India. A methodological framework is developed that
extends Kayser’s (2007) research on the impact of globalization on domestic politics and merges it with Gritsch’s (2005) theory of ‘soft’ geo-politics of nation-states. This framework captures a policy dilemma wherein policymakers are caught between the twin objectives of enhancing economic growth and improving economic equity. Analysis of the Indian scenario reveals that political parties that overtly supported the ICT industry may have had electoral setbacks. The relative economic affluence of ICT entrepreneurs and professionals in comparison with agricultural and unskilled workers may have
contributed to popular disenchantment with political parties that expressly supported ICT-based development efforts. However, even when the political order was changed, the policy initiatives did not directly reverse the development of the ICT industry. It appears that the substantial impact of the ICT industry on economic growth and government revenues makes it imprudent to follow policies that are not supportive of the industry. Policy alternatives are suggested to enhance ICT-based development efforts in a manner that benefits all sections of society.

Keywords: Political Economy, Globalisation, Economic Growth, ICT Sector, India

International Journal of Interdisciplinary Social Sciences, Volume 4, Issue 9, pp.201-212. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.258MB).

Prof. Dilip Dutta

Associate Professor in Economics, Discipline of Economics, Faculty of Economics and Business, The University of Sydney, Sydney, NSW, Australia

PhD in Economics from the University of California, Berkeley. Research interests include (i) role of ICT in development, (ii) services & development, (iii) business process outsourcing under globalization, and (iv) social shaping of India’s software sector. Editor of the International Journal of Development Issues published by the Emerald Group Publishing. Director of the South Asian Studies Group. Publications in journals such as Economic Record, Applied Economics, Applied Economics Letter, International Journal of Social Economics, Third World Quaterly, Economic Papers, Journal of Contemporary Asia, etc. Chapters in edited books published by Oxford University Press, Palgrave-Macmillan, Edward Elgar, Idea Group Inc., etc.

Supriyo De

The University of Sydney, NSW, Australia

Educational qualifications: Before completing his Ph.D. in economics from the University of Sydney, Dr. De did his Master of Economics from Yokohama National University, Japan and also did his Master of Arts from Jawaharlal Nehru University, New Delhi, India. Dr. De has a joint publication in Economic Record.


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